The chilling effect of it is. What if they demand you give them information you do not have a way of accessing. (Eg Signal). How would you comply? Do you have to pre-empt whatever requests you MIGHT get and ensure you could back-door a user if it were required. The law also seems to imply that ASIO could demand a single employee at a company backdoors something and they wouldn't be able to tell their co-workers.
That's what Technical Capability Notices are for. You don't have to implement a backdoor until they force you to. They have worded the legislation to make it sound as though this cannot be used to implement "systemic weaknesses" but this is bullshit (their definition of a "systemic weakness" would be something like getting a backdoor into OpenSSL, while a backdoor in Facebook Messenger is not a "systemic weakness" because it only affects one application).